The Statute of Limitations on Debt in Colorado
As in most states, the statute of limitations on consumer debt in Colorado varies according to the type of debt. The Colorado Fair Debt Collection Practices Act provides protection for state consumers, expanding upon the scope of the Fair Debt Collection Practices Act (FDCPA), the national legislation governing personal debt. The Federal Trade Commission (FTC) regulates all consumer law in the United States. The agency serves as enforcement arm for the FDCPA. The Colorado Department of Law is responsible for enforcing the state legislation. In addition to Colorado, 41 other states have their own laws regarding consumer debt.
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Statute of Limitations
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Statute of limitations typically refers to the length of time a creditor has to legally collect a debt against you. A creditor may not legally sue you past the time period detailed in the statue of limitations. This time period may differ greatly from the statute of limitations on credit reporting, the length of time a debt may legally appear on your credit report, normally seven or 10 years, depending on the debt.
Written and Oral Contracts
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Written contracts are agreements signed by both the borrower and the lender. Car loans and other installment accounts are considered written contracts. With oral contracts, no such document exists. For the purpose of statute of limitations, Colorado treats both types of loans in the same way. According to section 13-80-103.5 of the Colorado Fair Debt Collection Practices Act, the statute of limitations is six years from the date of the last interest payment. Section 13-81-103 provides additional detail on when a statute of limitations begins and ends.
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Rent and Bad Checks
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Section 13-80-103.5(1)(b) of the law provides Colorado landlords with six years to collect past rent payments. The time clock starts sticking when the debt first goes into arrears. Bad checks written in the amount of $20 or more are also covered by the law. The statute of limitations is two years, as detailed in section 13-80-102 of the Colorado Fair Debt Collection Practices Act.
Open Accounts
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Both state and federal law designate credit cards as open accounts. In Colorado, open accounts have a statute of limitations of six years. This time period can be extended by creditors who successfully seek a judgment against a debtor. Judgments can extend the statute of limitations by six years and can be renewed indefinitely. Colorado law regarding open accounts is detailed in section 13-80-103.5 of the Fair Debt Collection Practices Act.
Child Support
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Under Colorado law, child-support judgments stay active until they are paid. The judgments auto-renew every six years.
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References
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